Four CD-R disc makers begin legal proceedings against Philips

CMC Magnetics, Ritek, Prodisc Technology and Daxon Technology, four major Taiwan-based producers of blank CD-R discs, are poised to jointly file legal proceedings in Taiwan to accuse Royal Philips Electronics of imposing its unreasonable and discriminating Veeza licensing program upon them, according to a press release issued on September 3 by the Taiwan Information Storage Association (TISA) on behalf of the four companies. The four companies’ key argument in the lawsuit is that Veeza’s high royalty charge rates have severely limited the companies’ ability to operate in the market for blank CD-R discs and that the licensing system discriminates against them because Philips has been unable to subject India-based maker Moser Baer India (MBI) and fellow makers in China to Veeza, TISA secretary general Tzuang-ren Jeng pointed out.

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